Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2020

Note 3. Net Income (Loss) Per Share

Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average shares of common stock outstanding for the period. Diluted net income (loss) per share is calculated by dividing net income (loss) by the weighted average shares of common stock outstanding for the period plus amounts representing the dilutive effect of securities that are convertible into common stock. The Company calculates diluted income (loss) per common share using the treasury stock method and the as-if-converted method, as applicable.

The following table presents the computation of net income (loss) per share (in thousands except per share data):

	Three months ended June 30,					Six months ended June 30,
	2020			2019		2020			2019
Numerator:
Net income (loss)	$	(736	)	$	662	$	(1,938	)	$	998
Denominator:
Weighted average common shares outstanding - basic		9,683			9,697		9,686			9,661
Plus dilutive effect of potential common shares		—			431		—			410
Weighted average common shares outstanding - diluted		9,683			10,128		9,686			10,071
Net income (loss) per share:
Basic	$	(0.08	)	$	0.07	$	(0.20	)	$	0.10
Diluted	$	(0.08	)	$	0.07	$	(0.20	)	$	0.10

Diluted weighted average common shares outstanding for the three months ended June 30, 2019 includes 9,000 warrants and 422,000 options outstanding. Diluted weighted average common shares outstanding for the six months ended June 30, 2019 includes 5,000 warrants and 405,000 options outstanding.

Potentially dilutive securities (in common stock equivalent shares) not included in the calculation of diluted net income (loss) per share because to do so would be anti-dilutive are as follows (in thousands):

	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
Stock options and restricted stock		1,847		67		1,762		258
Warrants outstanding		51		—		51		—
Total		1,898		67		1,813		258